IFC to work with Vietnam's SCIC on divestments, co-financing

SCIC, founded in 2006, buys stakes in Vietnamese companies primarily for the purpose of acting as the government's representative in decision-making, along with supporting key industries in Vietnam's economy. IFC will help SCIC exit selected portfolio companies by buying equity stakes, or by mobilizing capital from international buyers for the purpose, according to a release. The two will also pursue take-private opportunities on a case-by-case basis.

In addition, IFC will develop a plan to improve corporate governance in SCIC's portfolio companies, with the goal of bringing international best practices to benefit Vietnamese businesses. IFC will also institute annual training programs for portfolio company executives in order to ensure continued improvement in key areas.

"With a portfolio of about 200 companies, we are conducting thorough assessments to strengthen corporate governance in these companies to improve companies' value and ensure the state interest," said SCIC Chairman Nguyen Duc Chi. "With IFC's support, we hope to learn from international best practices and find more investment opportunities in both domestic and overseas markets."

IFC is active both as a direct investor in Asian companies and as a supporter of third-party investors that can support its development goals. It provides this support both as an LP, such as in its recent commitment to the debut fund of China's Long Hill Capital Management, and by partnering with investors on ventures such as the lending platform launched earlier this year alongside ADM Capital.

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• Topics
• Southeast Asia
• LPs
• Vietnam
• IFC
• Exit